Correlation Between ARDAGH METAL and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and VIENNA INSURANCE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ARDAGH METAL and VIENNA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARDAGH METAL PACDL 0001 and VIENNA INSURANCE GR, you can compare the effects of market volatilities on ARDAGH METAL and VIENNA INSURANCE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ARDAGH METAL with a short position of VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and VIENNA INSURANCE.
Diversification Opportunities for ARDAGH METAL and VIENNA INSURANCE
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ARDAGH and VIENNA is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE and ARDAGH METAL is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ARDAGH METAL PACDL 0001 are associated (or correlated) with VIENNA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIENNA INSURANCE has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between ARDAGH METAL and VIENNA INSURANCE
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the VIENNA INSURANCE. In addition to that, ARDAGH METAL is 4.32 times more volatile than VIENNA INSURANCE GR. It trades about -0.03 of its total potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.02 per unit of volatility. If you would invest 3,160 in VIENNA INSURANCE GR on November 2, 2024 and sell it today you would earn a total of 45.00 from holding VIENNA INSURANCE GR or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. VIENNA INSURANCE GR
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| VIENNA INSURANCE |
ARDAGH METAL and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and VIENNA INSURANCE
The main advantage of trading using opposite ARDAGH METAL and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, VIENNA INSURANCE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VIENNA INSURANCE will offset losses from the drop in VIENNA INSURANCE's long position.| ARDAGH METAL vs. Carsales | ARDAGH METAL vs. SALESFORCE INC CDR | ARDAGH METAL vs. ON SEMICONDUCTOR | ARDAGH METAL vs. CVW CLEANTECH INC |
| VIENNA INSURANCE vs. SPORT LISBOA E | VIENNA INSURANCE vs. BII Railway Transportation | VIENNA INSURANCE vs. United Utilities Group | VIENNA INSURANCE vs. Canadian Utilities Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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